These actions are based on the deficiencies in regulatory compliance
FinTech BizNews Service
Mumbai, 30 November 2023: The Reserve Bank of India (RBI) has, by separate
orders, imposed a monetary penalty on 2 Authorized Dealer Banks. These actions
on both the Authorized Dealer Banks are based on deficiencies in regulatory
compliance, as per the press releases issued by the RBI on 30 November 2023.
1 The Reserve Bank of India has imposed a monetary penalty of ?10,000/-
(Rupees Ten thousand only) on Bank of America, N.A. in exercise of powers vested
in the Reserve Bank under the provisions of Section 11(3) of FEMA, 1999, for
violation of Reserve Bank of India’s instructions on reporting requirements under
Liberalised Remittance Scheme of FEMA 1999.
The Reserve Bank of India had issued a Show Cause notice to the bank, in
response to which the bank submitted a written reply and also made oral
submissions thereon. After considering the facts of the case and the bank’s reply in
the matter, the Reserve Bank of India came to the conclusion that the violations
were substantiated and warranted imposition of penalty.
This action is based on the deficiencies in regulatory compliance and is not
intended to pronounce upon the validity of any transaction or agreement entered
into by the bank with its customers.
2 The Reserve Bank of India has imposed a monetary penalty of ?10,000/-
(Rupees Ten Thousand only) on HDFC Bank Limited. in exercise of powers vested
in the Reserve Bank under the provisions of Section 11(3) of FEMA, 1999, for
violation of Reserve Bank of India’s directions on acceptance of deposits from non-
residents.
The Reserve Bank of India had issued a Show Cause notice to the bank, in
response to which the bank submitted a written reply and also made oral
submissions thereon. After considering the facts of the case and the bank’s reply in
the matter, the Reserve Bank of India came to the conclusion that the violations
were substantiated and warranted imposition of penalty.
This action is based on the deficiencies in regulatory compliance and is not
intended to pronounce upon the validity of any transaction or agreement entered
into by the bank with its customers.
